A large amount of Thai baht is thrown to depreciate its value, and the recent depreciation of the Th

Selling a large amount of the baht to depreciate it is terminology short selling the baht or short the baht.

Shorting is to think that when the current valuation of a certain item (which can be a currency** commodity, etc.) is too high, borrow the commodity with the current **, sell it in the market (i.e., sell), and make it ** decline (according to the principle of supply and demand, when the supply exceeds demand, the commodity ** declines), and then buy back the commodity at a low ** to take the difference.

For example, the current 1 US dollar = 5 Thai dir, I borrow 500 billion baht for a month, pay 10 billion monthly interest, I sell the 500 billion baht in the foreign exchange market, ** US dollar, can get 100 billion US dollars, if Thailand** does not have enough foreign exchange reserves to buy all the Thai baht sold in the market, then the current exchange rate of the Thai baht can not be maintained (known by the principle of supply and demand), the Thai baht will depreciate to 1 US dollar = 8 baht after a month, I can use the $100 billion in my hand to buy back 800 billion baht, return the 500 billion baht I borrowed during the period, and pay 10 billion baht of interest for a month, which can be 290 billion baht. (The above analysis is only using the simplest model, ignoring many problems).

Perhaps the Southeast Asian financial crisis is the best proof of its negative impact. During the 1997 Southeast Asian financial crisis, hedging** became popular through the derivatives market. Investors led by Soros Quantum** have made every effort to suppress the Thai currency, the Thai baht, to promote its depreciation, while at the same time selling the Thai baht on a large scale in the currency's forwards, ** and options markets.

After the failure of Thailand's intervention, the Thai baht could only be allowed to depreciate, so that the hedged** in a short position would profit profits. The crisis has wiped out decades of wealth in Southeast Asia, with hundreds of billions of dollars in losses for ASEAN countries, a 30-year setback in Indonesia's economy, and nearly half of the Philippines' national wealth. As a result, the pace of the shift of the international economic center to the Asia-Pacific region has slowed, the yen has suffered a heavy blow, and the dollar has recovered and strengthened its position in the region.

It is to use the baht to exchange a large number of other currencies, so that the circulation of baht in the market increases.

Although the price of goods in Thailand** has caused some economic pressure on tourists, there are still hidden springs in other countries that can offer similar travel experiences and relatively low**. Here are some of the countries that may serve as "flat" destinations for Thailand:

1.Indonesia

Indonesia is one of the largest countries in Southeast Asia and is popular for its unique culture, beautiful beaches, and spectacular natural landscapes. In addition, Indonesia's relatively low prices allow travelers to have an enjoyable travel experience on a budget.

2.Philippines

With beautiful beaches and islands, fascinating historical sites, and countless natural wonders, the Philippines is a popular tourist destination. Prices in the Philippines are relatively low, which can provide tourists with a variety of travel options.

3.Cambodia

Cambodia's Angkor monuments are one of its most famous attractions, while the country is also home to many beautiful beaches and natural beauty. Prices in Cambodia are relatively low, making it suitable for a limited travel budget.

4.Myanmar

Myanmar has a long history and cultural heritage, such as the Potala Palace and the famous Golden Shrine. Prices in Myanmar are relatively low and can provide tourists with a unique travel experience.

In short, although the recent price of goods in Thailand can cause inconvenience to some tourists, the above-mentioned countries offer a variety of travel options and are relatively low, so they can be considered as "flat" destinations in Thailand.

Reason: First of all, the impact of upstream capital in the international financial market. At that time, there were about $7 trillion in liquid international capital worldwide.

Once international speculators find out which country or region is profitable, they will immediately impact the currency of that country or region through speculation in order to make huge profits in the short term.

In addition, Thailand's foreign exchange policy is inadequate. In order to attract foreign capital, on the one hand, it maintains a fixed exchange rate, and on the other hand, it expands financial liberalization, which provides an opportunity for international speculators to take advantage of. Thailand deregulated its capital market in 1992 before its financial system was straightened out, allowing the flow of short-term funds unimpeded and providing conditions for foreign speculators to speculate on the baht.

In order to maintain a fixed exchange rate system, Thailand has used its foreign exchange reserves to cover its deficit for a long time, which has led to an increase in external debt. In the case of a large amount of medium- and short-term debt, a country's currency depreciation is inevitable once the outflow of foreign capital exceeds the inflow of foreign capital, and the country's foreign exchange reserves are not enough to make up for the shortfall.

Other underlying factors include overdraft economic growth and the expansion of non-performing assets. Maintaining a relatively high rate of economic growth is the common aspiration of developing countries.

When conditions for high growth became inadequate, these countries turned to borrowing foreign debt to sustain growth in order to maintain growth. However, due to the sluggish economic development, by the mid-90s of the 20 th century, some Asian countries were no longer able to repay their debts. In Southeast Asian countries, the real estate bubble has only been exchanged for bad and bad debts on bank loans.

The presence of a large number of non-performing assets, in turn, affects investor confidence.

The market system is immature. The first is to intervene excessively in the allocation of resources, especially in the loan investment and projects of the financial system; The other is that the financial system, especially the regulatory system, is not perfect.

Defects of the "export substitution" model. The "export substitution" model is an important reason for the economic success of many Asian countries. However, this model also has three shortcomings:

First, when the economy develops to a certain stage, the cost of production will increase, and exports will be suppressed, causing an imbalance in the balance of payments of these countries; Second, when this export-oriented strategy becomes the development strategy of many countries, it will form a mutual squeeze between them; Third, the step-by-step progress of products is a necessary condition for continuing to practice export substitution, and it is impossible to maintain competitiveness by relying only on the advantage of cheap resources. These countries in Asia, after achieving high growth, have not solved these problems.

The Asian financial crisis first started in Thailand, in February 1997, speculators represented by Soros in February and March from the Bank of Thailand ** up to 15 billion US dollars in forward baht contracts, and in February and May several times sold a large amount of Thai baht, depressing the exchange rate of the Thai baht spot market, causing the Thai financial market to shake. Since May, international speculators have been attacking the Thai baht, and Thailand** was forced to announce on July 2 that it would abandon the exchange rate regime that is mainly pegged to the US dollar, after taking various measures to resist ineffective and depleting a large amount of foreign exchange reserves, and the Thai baht has depreciated sharply.

Thailand is not a developed country, just a small developing country.

The Thai Baht (ISO 4217 code: THB) is the official currency of Thailand, issued by the Thai ** bank, Bank of Thailand, and 1 baht is equivalent to 100 satang. Thai baht is available in denominations such as baht and 50 satang, as well as satang and baht coinage, and the auxiliary coins and rounding up are 1 baht equal to 100 satang.

There are seven denominations of banknotes including 1,000 baht and sadadang and baht coins in circulation. The obverse of each coin features the head of King Bhumibol Adulyadejd[1]". In 1937, the official price of the Thai baht was equal to 1 US dollar.

The unit of currency in Thailand is the "baht", and there are five denominations of banknotes such as 1,000 baht and seven coins of satang and baht. 1 baht is equal to 100 satang. There are more than 2,000 stores in Bangkok, Phuket, Pattaya, etc., where you can use UnionPay credit cards, credit cards are limited by credit limits, which may incur high fees caused by exceeding the credit limit, and it is recommended to use a savings card for large purchases.

Because Thailand is not a developed country, just a small developing country!

In fact, it's the same as the Peruvian currency, so I don't think it's worth much.

Because a country has an economic depression overnight! His money is worthless! It will inevitably affect other countries! This has caused a terrible chain reaction! In fact, everyone knows that it is a certain country that does it.

The security in Thailand is still okay, and it is not as chaotic as it is said.

Thailand is a country with a developed tourism industry, and it is also a popular place for Chinese tourists. There are Chinesemen and blue-eyed foreigners everywhere on the streets, and no one says that anything bad has happened.

Keep in mind that the Chinese Embassy**, although it may not be able to help, it is still useful to ask for help in case of difficulties, at least there is no language barrier. Chi Liangshu's embassy was actually very responsible, when we checked the embassy on the Internet, we accidentally dialed it out, it was about 8 o'clock in the evening, non-working hours. But after a while, the embassy staff on duty called back our ** (Thai mobile phone number), it is estimated that there is a caller ID, and asked us if we are in difficulty or something, and I feel very warm.

The cheapest thing to buy in Thailand is L'Oreal. Surprisingly cheap!! Basically, every girl will pick a few products, whether they use them for themselves or give them away.

Shopping in Thailand mainly depends on your hobbies, Bangkok cloth bags can represent the characteristics of Thailand and are very cheap, and gifts are more affordable. There are also crocodile products, which are cheap if you can find a wholesale point (there is one in the Chao Phraya Hotel Courtyard), and L'Oréal's skincare products, which are cheaper than in China because they have a production factory in Thailand.

As long as you go to Thailand, no one will resist it, you will choose all kinds of colors, large and small, and you won't feel distressed if you buy a lot and give it to your friends.

There is also Swarovski, this is also cheaper than in China, and the counters have about 4-6% off the discount, ** If you don't discount it, there will be a discount if you show your passport if you lose it, about 9% off. But there are not so many discounted styles, you can check them out. And Lee, Levi's jeans are cheap and very good to buy!